Sri Lanka President discusses vehicle imports, withholding tax and VAT digitization

Sri Lankan President Anura Kumara Dissanayake held an extensive discussion with officials from the Ministry of Finance today (January 7) at the Presidential Secretariat in Colombo.

The meeting focused on issues related to vehicle imports, withholding tax, and the digitalization of VAT collection.

A significant portion of the discussion addressed the challenges surrounding vehicle imports into Sri Lanka. The President emphasized the need for a well-balanced approach to addressing these concerns, taking into account the country’s financial constraints and economic priorities.

The President also highlighted the importance of establishing a mechanism to refund withholding taxes deducted from retirees who are not subject to income tax.

Additionally, President Dissanayake stressed the urgent need to digitize the Value-Added Tax (VAT) collection processes to enhance efficiency and transparency. He announced plans to implement a comprehensive digital system soon, which is expected to improve tax compliance and revenue generation.

During the meeting, the President expressed optimism about Sri Lanka’s economic progress, stating that the country is steadily moving towards recovery and stability. He reiterated the government’s commitment to maximizing the benefits provided to citizens, even amidst current challenges.

The meeting was attended by the Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma; Secretary to the Ministry of Finance, Mahinda Siriwardana; Governor of the Central Bank, Nandalal Weerasinghe; Senior Advisor to the President, Duminda Hulangamuwa; and senior officials from the Ministry of Finance.